Over 25 Years of Advising Florida’s Injured

Red flags in a sports contract

On Behalf of | Jun 20, 2023 | Contract Disputes

Signing a sports contract is a major step in an athlete’s career. It represents a culmination of hard work, talent and dedication. But contracts are complex legal documents, and it can be hard to know whether you are getting a fair deal.

To protect your interests, watch for common red flags.

Duration and termination clause

The duration and termination clause outlines the length of the contract and under what conditions either party can terminate it. If the contract locks an athlete into a long-term agreement without a reasonable way to terminate it, that is a red flag. The contract must provide fair conditions for termination.

Also, be wary of contracts that do not have a specific term or renew automatically. These could trap an athlete into an unfavorable contract for an indefinite period of time.

Imbalance in obligations

When reviewing a sports contract, athletes should pay close attention to whether the agreement fairly distributes responsibilities between themselves and the other parties, such as teams, sponsors or agents. Contracts should never burden the athlete excessively or expect them to fulfill numerous obligations while providing little in return.

A fair contract should clearly define the specific duties and expectations of the athlete, as well as the commitments other parties have. This may include detailing participation in training sessions, adhering to team rules and codes of conduct, promoting sponsors’ products or services, attending events or media appearances and representing the team or organization in a professional manner.

Unclear benefits

The contract should explicitly outline the compensation, bonuses and other benefits the athlete will earn. Vague or ambiguous clauses can lead to misunderstandings and potential disputes.

Request written clarification to prevent misunderstandings. Ask for an addendum or an amendment to the contract that explicitly specifies the compensation details, including the base salary, performance bonuses, signing bonuses, incentives and any other financial considerations.

The contract should list non-monetary benefits as well. This could involve healthcare coverage, travel allowances, housing accommodations, access to training facilities, sponsorship opportunities or other perks that contribute to the overall package.

By staying aware of potential red flags, athletes can protect their interests, reduce liability and make the best decisions for their future.